edi modernization case studies and best practices

Simplify and Accelerate Business Integration

Simplify and Accelerate e-Business Integration

EDI Modernization Case Studies and Best Practices

Simplify and Accelerate Business Integration Simplify and Accelerate Business Integration

EDI Modernization Drivers

Cumulative:

• Customer service / performance issues

• Lost revenue / lost business

• High incidence of processing errors

• Slow partner onboarding / changes

• Mounting costs of licensing, maintaining, and using legacy middleware

All Content © 2013 EXTOL International, Inc.

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Suppliers / Service Providers Customers Cloud/SaaS Applications & Services

External Locations, Partners, and Services

Enterprise Applications Enterprise Data

Data Warehouse

Operational Data

Business Intelligence

Your Business

Windows / Linux / IBM i / VMware

On-premise Applications, Services, and Data

Disruptive:

• Major ownership / organization changes

• New customer / partner requirements

• Platform changes

• Enterprise application upgrades

• New enterprise applications Your Business

Windows / Linux / IBM i / VMware


EDI Modernization Options

1. Do nothing (and deal with the consequences)

2. Plan for an EDI “happy path” and code the exceptions

3. Compensate with point tools and cope with a hybrid environment

4. Engage a service to replace or augment classic EDI

5. Migrate to a “Modern EDI” solution


3

Simplify and Accelerate Business Integration Simplify and Accelerate e-Business Integration

1.

Key Issues


3.

2.

What assets and practices are most affected by EDI modernization?

How do different EDI goals and requirements affect modernization strategy?

What best practices should you incorporate in your EDI modernization plan?

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EDI Modernization Impacts: Capabilities

Classic EDI System Modern EDI System

Modern EDI Software Services Infrastructure

Transfor- mation

Adapters

Partner Management

Event Notifications

Activity Monitoring

Application integration

Data Integration

Process Automation

Real-time Integration

Web Services

Integration

Capabilities

Life Cycle Tools and Practices

IT Department

Configured EDI Processes

Map

Partner Communi-

cations Database

Insert

Document

Document

EDI Software / Service Infrastructure

Transfor- mation

Communi- cations

Partner management Activity

reporting Auditing


5


EDI Modernization Impacts: Integration Assets

Classic EDI System

Event

XML Spread- sheet

Business Process

Schedule

Email

AS2 Data base

Flat File

S/FTP/S MFT

Appli- cation

Web Service

Monitor Configured Integration Processes

Integration

Assets

Integration

Capabilities

Modern EDI System


IT Department


Map

Partner Communi-

cations Database

Insert

Document

Document


Transfor- mation

Communi- cations


reporting Auditing

Map

Partner Communi-

cations Database

Insert

Document

Document


Transfor- mation

Adapters

Partner management

Activity monitoring

Auditing / diagnosis


Data integration

Process automation

Real-time integration

Web Services


6


XML Email S/FTP/S


Event

Schedule

Spread- sheet

Business Process

AS2 Data base

Flat File

MFT

Appli- cation

Web Service



Transfor- mation

Adapters

Partner management

Activity monitoring



Data integration

Process automation


Web Services

EDI Modernization Impacts: Best Practices

Classic EDI System

IT Department Business Depts

Integration

Assets

Best

Practices

Integration

Capabilities

Modern EDI System


IT Department


Map

Partner Communi-

cations Database

Insert

Document

Document


Transfor- mation

Communi- cations


reporting Auditing


7

Map

Partner Communi-

cations Database

Insert

Document

Document


EDI Modernization Impacts

Classic EDI System


IT Department


Map

Partner Communi-

cations Database

Insert

Document

Document


Transfor- mation

Communi- cations


reporting Auditing

XML Email S/FTP/S


Event

Schedule

Spread- sheet

Business Process

AS2 Data base

Flat File

MFT

Appli- cation

Web Service


IT Department Business Depts

Modern EDI System

Integration

Capabilities


8

Map

Partner Communi-

cations Database

Insert

Document

Document

Integration

Assets

Best

Practices


Transfor- mation

Adapters

Partner management

Activity monitoring



Data integration

Process automation


Web Services


1.

Key Issues


3.

2.




9


Case Study #1 – Trucking Company

Background: • Business: Dry van carrier and general commodities transporter

• Environment: Mainframe with in-house ERP & EDI solutions

• Goals:

– Move off mainframe on or before lease renewal date

– Leverage existing investments in applications and data

– Make switch to new EDI platform transparent to trading partners


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Case Study #1 – Trucking Company Legacy System


11

Firestone

Nestle

Hallmark

Lowes

OfficeMax

Other

Mainframe

In-house EDI

Translator

Custom

Code

Custom

Code

Comms

(FTP / AS2)

I

n

t

e

r

f

a

c

e

Interface

Files

In-house

ERP /

COBOL

Apps


Legacy System

Modernized System


ISA/GSA

Routing Maps I

n

t

e

r

f

a

c

e

Interface

Files

TMW

Suite ISA/GSA

Routing Maps

Comms

(FTP / AS2)


12

Firestone

Nestle

Hallmark

Lowes

OfficeMax

Other

Windows

Cobol

Apps

Legacy System

Mainframe

In-house EDI

Translator

Custom

Code

Custom

Code

Comms

(FTP / AS2)

I

n

t

e

r

f

a

c

e

Interface

Files

In-house

ERP /

COBOL

Apps

214 Late Code Service



Results: • New ERP and integration platform running on Intel-based architecture

• 7 months from software installation to project completion

• Transparent switch to new integration platform for trading partners

• Increased service availability

• Operational savings of $1M per year


13


Case Study #2 – Specialty Food Manufacturer

Background: • Business: Specialty food products supplier to major retailers

• Environment: SAP, on-premise & outsourced EDI, global data synchronization

• Goals:

– Reduce partner onboarding time, including mapping and testing

– Move outsourced EDI service in-house and

– Eliminate multiple manual touch points

– Expand EDI transactions (Advanced ship notices, Remittance advice, other)

– Streamline item synchronization process

– Consolidate integration middleware and tools


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SAP ECC 5.0

Legacy System

Case Study #2 – Specialty Foods Manufacturer

Legacy

EDI

Translator

Wal-mart

Target

Dollar General

Family Dollar

Other

Text

Doc PDFs Email

Accounting

Sales

External

EDI Service

PO

(PDF)

EDI Spc

EDI Spc

Distribution

Email

Email Invoice


15

Maps


Modernized System

Case Study #2 – Specialty Foods Manufacturer

Map

SAP ECC 6.0

IDocs

IDocs Out

Wal-mart

Target

Dollar General

Family Dollar

Other

Map Inbound

Processes

SAP

remote function call (RFC)

Email

Status

Log

file monitor

IDocs

Map Map Outbound

Processes Enveloper

Comms

(AS2 / FTP)

Router /

De-enveloper

EXTOL

Data

Synchronizer

Item Mapping

Process 1WorldSync™

812 / 864 messages

IDocs In

file monitor


16

SAP ECC 5.0

Legacy System

Legacy

EDI

Translator

Text

Doc PDFs Email

Accounting

Sales

External

EDI Service

PO

(PDF)

EDI Spc

EDI Spc

Distribution

Email

Email Invoice

Maps


Case Study #2 – Specialty Food Manufacturer

Results: • Completion of ERP upgrade and integration

• Consolidation of internal and outsourced integration to one middleware platform and skill set

• Reduction in manual data entry, process intervention, and partner turnaround time

• Faster trading partner onboarding through pattern reuse


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Case Study #3 – 3rd Party Logistics Provider

Background: • Business: 3PL, Warehousing, Transportation, Fulfillment services

• Environment: Aging, inflexible 3rd party integration environment with multiple 3GL support

• Goals:

– Upgrade ERP to the latest revision

– One integration platform and skill set


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Legacy System Stored Procedures


• 19

Maps

Item

Exists

Allocated

Item

Lookup

Insert /

Update

Order

Allocated

Order

Exists

Content-based

Routing


19

ERP Infor

V3.10

Food Company

Food Company

Food Company

Food Company

Food Company

Comms

(AS2 / FTP)

Maps


Modernized System


• 20

I

n

t

e

r

f

a

c

e

SQL Actions

ERP Infor i10


20

Content-based

Routing Map Transformation

Maps

Transformation

Maps

Food Company

Food Company

Food Company

Food Company

Food Company

Legacy System Stored Procedures

Maps

Item

Exists

Allocated

Item

Lookup

Insert /

Update

Order

Allocated

Order

Exists

Content-based

Routing

ERP Infor

V3.10 Comms

(AS2 / FTP)

Maps

Comms

(AS2 / FTP)



Results: • 5 months, 5 TP’s, 9 Business Documents (X12/5, FlatFile/4),

• Successful ERP upgrade and TP migration

• Full integration with ERP, Doc Tracking and Error Notification Infrastructure


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Case Studies: Summary

Trucking Company Specialty Food Mfr 3PL

Business

Issues

Platform change EDI process

efficiency

Aging / Scattered

middleware

Trigger Hardware lease

renewal deadline

ERP upgrade ERP upgrade

Goals Scalability & reliability EDI expansion &

process efficiency

Consolidation & single

skillset

Scope 400+ Maps, 300+ TPs 12 Maps, 6 large TPs 50+ Maps, 5 large TPs

Clearly defined roles

and responsibilities

Categorize Partners

by map requirements

Separate Test and

Prod Environments

Transaction Analysis,

Specs, Sample Data

Integration Pattern

Analysis

Weekly Project

Retrospective

Best

Practices

Pre - & post - project

architecture review

Short development

sprints

Life cycle POC before

roll-out


1.

Key Issues


3.

2.




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15 Steps to EDI Modernization – Pre-project Tasks

# Task Details and Options

1 Catalog EDI infrastructure services Document baseline EDI requirements and required enhancements

2 Inventory configured EDI objects Document partners, interfaces, document types, maps, workflows, etc. including custom code

3 Profile life cycle tools and processes EDI implementation / maintenance, s chedules , events, workloads, required service levels, exception - handling, scheduled downtime, backups, etc.


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5 Choose a modernization strategy 1. Stabilize legacy system and apply modern solution as add / change requirements surface

2. Phase - in modern solution by replacing legacy EDI implementation, partner - by - partner

3. Replace partner - facing and last - mile integration layer services separately

4. Replace legacy system with modern solution en masse

6 Establish modernization timeline Including target dates for milestones below

7 Identify supplemental resource needs External assistance needs for planning, implementation, etc.

8 Select modern EDI solution target Based on fit to current and anticipated use cases, deployment preference, implementation assistance needed, support, etc.

4 Perform gap analyses based on current

and anticipated use cases

1. Integration infrastructure

2. Integration processes / assets

3. Integration life cycle practices


15 Steps to EDI Modernization – Project Tasks


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# Task Details and Options

9 T rain planning and

migration staff

Ensure understanding of solution capabilities and best practices

10 Enumerate Goals and

Requirements

Identify process improvement opportunities, and processes that need to be

preserved. Gather specifications, sample data, supporting documentation.

11 Define Integration

Architecture

Identify process patterns, exception handling strategy, application interfaces and

performance considerations.

12 Develop Migration

Strategy

Analyze skills, resources, tools, complexity, timeline, expectations, risk & success

factors

13 Identify Migration Tactics Enumerate test, development and operational plans; partner priority, impact and

schedule.

14 Perform Migration Activity Short, prescribed migration “sprints” that follow defined plans and schedule.

15 Migration Retrospective Continuous review and refinement of migration activity during and after the migration

project.


EXTOL Simplifies EDI Modernization and Migration

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Suppliers / Service Providers Customers Cloud/SaaS Applications & Services

EXTOL

Business Integrator

Dashboard / Reporting

/ Activity Monitoring

External Locations, Partners, and Services

Enterprise Applications Windows / Linux / IBM i / VMware Enterprise Data

On-premise Applications, Services, and Data

Data Warehouse

Operational Data

Business Intelligence


Integration Studio

Design-time Tools


EDI Modernization Success Factors

• For cost justification, leverage baseline metrics for error rates, chargebacks, returns, exceptions, onboarding, and operations

• Invest sufficient time on legacy system inventory, development of object templates, and reuse strategy

• Reduce risk by managing change in increments

• Employ vendor services as appropriate to shorten your learning curve and reduce time to production

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Email: [email protected]

Phone: +1 (201) 847-1200


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